Login or signup
36
INNOVATE

Faster Tech Transfer

Carnegie Mellon University is trying to streamline technology transfer.
Advertisement

Carnegie Mellon University is trying to streamline technology transfer. Nationwide, university tech transfer fueled 450 businesses and 4,000 licenses in 2002. Yet the process of transferring innovation from college labs to the private sector remains byzantine, with start-ups and schools haggling over licensing and royalty deals. "It's hard to have a standard deal, since so much of the value is set by the marketplace," says Carol Mimura, of the University of California at Berkeley. Nevertheless, CMU has created the "5% and go in peace" solution. Start-ups grant CMU 5% of their equity and a 1% royalty for a nonexclusive license. Royalty payments are deferred for three years. Exclusivity costs an additional 1%. Since the plan was put in place, "the time it takes to negotiate licenses has decreased by 60%," says CMU's Robert Wooldridge.

Last updated: Jul 1, 2003




Register on Inc.com today to get full access to:
All articles  |  Magazine archives | Comment and share features
EMAIL
PASSWORD
EMAIL
FIRST NAME
LAST NAME
EMAIL
PASSWORD

Or sign up using: